DoD's $47.8M Ammunition Services Contract with BAE Systems: A Deep Dive
Contract Overview
Contract Amount: $47,766,167 ($47.8M)
Contractor: BAE Systems Technology Solutions & Services Inc.
Awarding Agency: Department of Defense
Start Date: 2012-11-01
End Date: 2018-03-31
Contract Duration: 1,976 days
Daily Burn Rate: $24.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF AMMUNITION SERVICES
Place of Performance
Location: EWA BEACH, HONOLULU County, HAWAII, 96706
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $47.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: IGF::OT::IGF AMMUNITION SERVICES Key points: 1. Contract awarded to BAE Systems for ammunition services. 2. Total value of $47.8 million over 1976 days. 3. Competition type: Full and Open. 4. Sector: Defense/Government Services.
Value Assessment
Rating: fair
The contract's value of $47.8M over nearly 2000 days suggests a moderate annual spend. Benchmarking against similar facilities support services contracts would be necessary to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific price discovery mechanisms and the number of bids received are not detailed here.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers. The actual taxpayer impact depends on the effectiveness of the competition in driving down costs.
Public Impact
Ensures availability of critical ammunition support services for the Department of the Navy. Supports military readiness and operational capabilities. Potential economic impact through BAE Systems' operations and subcontracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics.
- Potential for cost overruns if not closely managed.
- Limited visibility into sub-contracting practices.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type can limit cost risk.
- Long-term contract provides stability for services.
Sector Analysis
This contract falls within the Defense sector, specifically for facilities support services related to ammunition. Spending in this area is critical for military readiness and can be substantial, with benchmarks varying widely based on scope and location.
Small Business Impact
The data does not indicate if small businesses were involved as prime contractors or significant subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
Oversight would typically involve contract performance reviews, financial audits, and compliance checks by the Department of the Navy to ensure services meet requirements and funds are used appropriately.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of detailed performance metrics.
- Potential for scope creep.
- Dependence on a single contractor for critical services.
- Limited transparency on sub-contractor performance.
Tags
facilities-support-services, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. IGF::OT::IGF AMMUNITION SERVICES
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $47.8 million.
What is the period of performance?
Start: 2012-11-01. End: 2018-03-31.
What was the average annual cost of these ammunition services?
The total contract value was $47,766,166.77 over 1976 days. This equates to approximately $24,173 per day, or roughly $8.8 million annually. This figure provides a baseline for understanding the scale of spending on these services.
What were the key performance indicators (KPIs) for this contract?
The provided data does not specify the key performance indicators (KPIs) used to evaluate BAE Systems' performance. Understanding these KPIs is crucial for assessing the effectiveness and value delivered under the contract.
Were there any contract modifications or change orders that significantly impacted the cost?
The data does not detail any contract modifications or change orders. Information on modifications would be essential to understand if the initial contract value was altered and the reasons behind such changes, impacting the final cost.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0060412R3018
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $47,766,167
Exercised Options: $47,766,167
Current Obligation: $47,766,167
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $1,880,731
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-11-01
Current End Date: 2018-03-31
Potential End Date: 2018-03-31 00:00:00
Last Modified: 2018-07-31
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